DR. DAVID MATHUVA STRATHMORE BUSINESS SCHOOL FINANCIAL MANAGEMENT WORKSHOP FOR SMES
|
|
- Samson Antony White
- 6 years ago
- Views:
Transcription
1 1 REVENUE IN SMEs DR. DAVID MATHUVA STRATHMORE BUSINESS SCHOOL FINANCIAL MANAGEMENT WORKSHOP FOR SMES
2 2 Many SMEs pursue optimization of taxable profit (i.e., minimizing taxes) Do you agree?
3 3 What is an SME? According to IASB (a) do not have public accountability, and (b) publish general purpose financial statements for external users. No limit on the size of an entity
4 4 What is an SME? Depends the focus; but: TURNOVER: > Kes. 5 million to < Kes. 1 billion per annum EMPLOYEES: > 10 to < 100
5 IFRS adoption by Emerging Nations 5 Why did Kenya adopt IFRS in 1999? increase the relevance and quality of financial statements issued (Sellhorn & Gornik-Tomaszewski, 2006) benchmark, what are the alternatives? legitimization act (Irvine, 2008) Benefits: increased transparency, economic opportunities and enhanced competitiveness, lower CoC? Market efficiency?
6 Key milestones 6 Topics not relevant to SMEs are omitted: interim financial reporting, segment reporting, special accounting for assets held for sale and earnings per share Where full IFRSs allow accounting policy choices, the IFRS for SMEs allows only the easier option. Many of the principles for recognising and measuring assets, liabilities, income and expenses in full IFRSs are simplified. Significantly fewer disclosures are required, the standard has been written in clear, easily translatable language.
7 To further reduce the reporting burden for SMEs, revisions to the IFRS will be limited to once every three years. 7
8 The Journey: IFRS for SMEs Project c/f from IASC 24 Jun. 04 DP: Preliminary Views on Accounting Standards for SMEs 15 Feb. 07 ED: Proposed IFRS for SMEs 3 Oct. 13 ED/2013/9 Proposed Amendments 25 Jun. 12 RFI: Review of IFRS for SMEs 9 Jul. 09 IFRS for SMEs issued effective immediately st. jurisdictional approval 21 May Amendments to IFRS for SMEs issued (w.e.f 1 Jan. 2017) Revaluation now permitted Deferred income tax aligned with IAS 12 Exploration & evaluation of mineral resources aligned with IFRS 6
9 9 Albu et al. (2013) [& 13 others!] Differences exist between stakeholder groups and in a number of countries on preferred implementation approach of IFRS for SMEs Mandatory adoption? Voluntary adoption? Convergence of national regulations with IFRS for SMEs? less supported by auditors! Most support for the convergence approach.
10 Contents of the IFRS for SMEs 10 Section Preface 1 Small and Medium-sized Entities 2 Concepts and Pervasive Principles 3 Financial Statement Presentation 4 Statement of Financial Position 5 Statement of Comprehensive Income and Income Statement 6 Statement of Changes in Equity and Statement of Comprehensive Income and Retained Earnings 7 Statement of Cash Flows 8 Notes to the Financial Statements 9 Consolidated and Separate Financial Statements 10 Accounting Policies, Estimates and Errors 11 Basic Financial Instruments 12 Additional Financial Instruments Issues 13 Inventories 14 Investments in Associates 15 Investments in Joint Ventures 16 Investment Property 17 Property, Plant and Equipment 18 Intangible Assets other than Goodwill 19 Business Combinations and Goodwill 20 Leases 21 Provisions and Contingencies 22 Liabilities and Equity 23 Revenue 24 Government Grants 25 Borrowing Costs 26 Share-based Payment 27 Impairment of Assets 28 Employee Benefits 29 Income Tax 30 Foreign Currency Translation 31 Hyperinflation 32 Events after the End of the Reporting Period 33 Related Party Disclosures 34 Specialised Activities 35 Transition to the IFRS for SMEs Glossary Derivation Table
11 The IFRS for SMEs 11 Topic 1.6 Section 23 Revenue
12 This PowerPoint presentation was prepared by IFRS Foundation education staff as a convenience for others. It has not been approved by the IASB. The IFRS Foundation allows individuals and organisations to use this presentation to conduct training on the IFRS for SMEs. However, if you make any changes to the PowerPoint presentation, your changes should be clearly identifiable as not part of the presentation prepared by the IFRS Foundation education staff and the copyright notice must be removed from every amended page. This presentation may be modified from time to time. The latest version may be downloaded from: The accounting requirements applicable to small and medium-sized entities (SMEs) are set out in the International Financial Reporting Standard (IFRS) for SMEs, which was issued by the IASB in July The IFRS Foundation, the authors, the presenters and the publishers do not accept responsibility for loss caused to any person who acts or refrains from acting in reliance on the material in this PowerPoint presentation, whether such loss is caused by negligence or otherwise. 12
13 Section 23 Overview 13 Section 23 combines the topics covered separately in IAS 18 Revenue IAS 11 Construction Contracts The principles in Section 23 are the same as those in IAS 18 and IAS 11 Section 23 includes an Appendix of examples
14 Section 23 Scope 14 Section 23 covers revenue from Sale of goods Rendering of services Construction contracts Use of an entity s assets by others: interest, royalties, dividends received
15 Section 23 Scope exclusions 15 But some specialised revenue is dealt with in other sections of IFRS for SMEs Leases (Section 20) Financial instruments (Sect 11 and 12) Associates and joint ventures (Sections 14 and 15) Investment property (Section 16) Agriculture (Section 34)
16 Section 23 Main topics covered 16 Section 23 principles cover What is revenue How to measure revenue When to recognise revenue Identification of the revenue transaction Multiple deliverables Disclosures
17 Section 23 Definition of revenue 17 Definition of revenue Gross inflow of economic benefits during the period from the ordinary activities of an entity Measured gross (different from gains) Economic benefits means cash or other assets Results in increases in equity (ie exchanges are not revenue) Ordinary activities (not one-off gains)
18 Section 23 Example: definition 18 Example: Chain of 10 bicycle shops sells new and used bicycles and rents bicycles. This year it sold the land and building for one of its shops, which was closed. It has 3 types of revenue: Sale of new bikes, Sale of used bikes, and Rentals. The proceeds from selling the land and building are not revenue (not ordinary ); instead, this is presented net as a gain or loss.
19 Section 23 Measurement principle 19 Principle: Fair value of consideration received or receivable Net of trade discounts, prompt settlement discounts, volume rebates Does not include amounts collected on behalf of others, such as: Sales tax, value added tax Amounts collected while acting as an agent rather than principal seller (only the commission is revenue)
20 Section 23 Example: cash discount 20 Example: Goods sold for 500, due in 60 days. Customer can take 10% discount if paid in 30 days. If customer gets the discount, revenue is 450. Would be wrong to have revenue 500 and interest or some other expense of 50.
21 Section 23 Example: sale to agent 21 Example: We sell goods for 100 through an intermediary (agent) who gets a commission of 10. We own goods until sold to end users. We are responsible for defects and returns from end users. We have revenue of 100 and commission expense of 10 only when agent sells goods to end user. Would be wrong to recognise revenue when goods are shipped to agent.
22 Section 23 Example: sale to reseller 22 Example: We sell goods for 90 to reseller who sells them for 100. We accept returns from the reseller. We have revenue of 90 when goods are sold to the reseller. We would accrue estimated returns at the same time.
23 Section 23 Example: collect sales tax 23 Example: We sell goods for 100 plus 10 sales tax. We remit the tax monthly to the government. Buyer immediately pays us 110. We have revenue of 100 Would be wrong to have revenue of 110 and tax expense of 10
24 Section 23 Deferred payment 24 Receipt of revenue is deferred If deferral is normal credit terms in the industry, revenue = contract amount (no discounting) But if deferral constitutes a financing transaction, revenue = present value of all expected receipts. Discount rate is either: Prevailing rate for similar instrument Implicit interest rate that discounts cash flows to current cash sale price
25 Section 23 Example: deferred payment 25 Example: We sell goods costing 1,500,000 for 2,000,000 due in 2 years interest free. Current cash price would have been 1,652,893. Financing transaction. Up front revenue is 1,652,893. Profit is 152,893. PV = (FV) / ((1+int)^periods) 1,652,893 = (2,000,000) / ((1+int)^2) Int. =.10 (10%) by solving the equation
26 Section 23 Example continued 26 Example, continued: Interest income year 1 = 1,652,893 x 10% = 165,289, unpaid, bringing receivable up to 1,818,182. Interest income year 2 = 1,818,182 x 10% = 181,818, bringing receivable up to 2,000,000, which is then repaid.
27 Section 23 Example continued 27 Example, continued: Journal Entries 1 Jan 16 Account receivable 1,652,893 Revenue 1,652, Dec 16 Account receivable 165,289 Interest revenue 165, Dec 17 Account receivable 181,818 Interest revenue 181, Dec 17 Cash 2,000,000 Account receivable 2,000,000
28 Section 23 Exchanges 28 Exchanges of goods or services Do not recognise revenue if: Exchange of similar goods / services, or Transaction lacks commercial substance Do recognise revenue if: Exchange of dissimilar goods / services, and Transaction has commercial substance
29 Section 23 Measurement of an exchange 29 If revenue is recognised on an exchange of [dissimilar] goods or services, measurement hierarchy: 1. FV of goods/services received (adjusted for any cash transferred) 2. FV of goods/services given up (adjusted for any cash transferred) 3. If neither of above can be measured reliably, then revenue = carrying amount of asset given up (adjusted for any cash transferred)
30 Section 23 Unit of account 30 Normally each individual sale transaction But if multiple deliverables may need to recognise revenue for each component separately, such as: Sale of goods and subsequent servicing Sale of goods and installation Sale of hardware and software Sale of software and future maintenance
31 Multiple elements: Illustration used car dealership 31
32 Section 23 Ex: multiple deliverables Example: Normally, car dealer sells car for 10,000 and offers 3-year service for an extra charge of 400. As a promotion, dealer includes 3-year service as part of sale of a car for total price 10,200. Multiple element transaction Revenue from sale of car = 10,000 / 10,400 x 10,200 = 9,808 (recognised at delivery) BODMAS! Revenue from service 392 recognised over 3 year service period 32
33 Section 23 Multiple deliverables 33 Occasionally, multiple deliverables must be recognised as a single transaction to reflect the commercial substance: Sale of goods with a separate agreement to repurchase the goods at a later date
34 Section 23 Customer loyalty awards 34 Sale of goods/services with customer loyalty awards In substance, this is a multiple deliverable Allocate FV of consideration received to (a) the main sale and (b) award credits based on FV. Award credits become deferred revenue (liability) until redeemed.
35 35 Kes. 3.8 billion The Estimated Worth of Unredeemed Safaricom Bonga Points (2015) -
36 Section 23 Recognition principle 36 Recognition means incorporating an item that meets the definition of revenue in profit or loss when it meets the following criteria: it is probable that any future economic benefit associated with the item of revenue will flow to the entity, and the amount of revenue can be measured with reliability.
37 Section 23 Recognition sale of goods 37 Sale of goods: Recognise revenue when risks and rewards are transferred; seller has no continuing involvement; amount of revenue is reliably measurable; it is probable that seller will receive the revenue; and costs incurred (including those to be incurred) can be measured reliably.
38 Section 23 Recognition sale of goods 38 Sale of goods: When are risks and rewards transferred? Normally: Title is transferred and/or buyer takes possession Risks are retained if: Performance obligation beyond normal warranty Sale contingent on buyer reselling Significant remaining installation Uncertainty about buyer returns
39 Section 23 Examples: sale of goods Example: Goods sold with 2-year warranty Warranty does not prevent revenue recognition if estimated cost is measurable. Normally not a separate deliverable. Example: Seller retains title to goods sold until final payment is received Does not prevent revenue recognition if collectability is assured or measurable 39
40 Section 23 Recognition rendering of services 40 Rendering of services: Recognise revenue based on stage of completion when the outcome of the transaction can be estimated reliably (see next slide) Straight line if many service acts Significant act(s) Cost recovery method when outcome cannot be estimated reliably
41 Section 23 Examples: rendering of services Example: Security firm receives 10,000 to respond to alarms for 2-year period Service contract stage of completion is even over two years. 10,000 / 24 = 417 revenue recognised per month. Example: Law firm fee contingent on winning the case, otherwise nothing. Outcome unknown. Costs are incurred. Service contract, outcome cannot be estimated reliably. Costs = expense. 41
42 Section 23 Stage of completion 42 Stage of completion outcome can be estimated reliably when: Amount of revenue is measurable Collection is probable Stage of completion at reporting date can be estimated reliably Costs incurred and future costs can be measured reliably
43 Section 23 Construction contracts 43 Construction contracts: Recognise revenue based on stage of completion when the outcome of the transaction can be estimated Cost recovery method when outcome cannot be estimated reliably Normally each contract separately, but occasionally: Split single contract into multiple Combine multiple contracts into single
44 Section 23 Construction contracts Construction contracts: Ways to estimate stage of completion Based on inputs: % of costs incurred to estimated total costs. (This is most common.) Based on outputs: Engineering survey of work performed Physical portion of work that has been completed (eg km of road paved) Exclude costs incurred for future activities (eg materials inventory and prepayments) 44
45 Section 23 Construction contracts Construction contracts: Other points Costs whose recovery is not probable are an immediate expense If a contract will probably result in a loss, immediately recognise the loss and a provision (onerous contract Section 21) 45
46 Section 23 Example: % of completion Example: Contract signed X1 for 2,000. Initial cost estimate is 1,200. In X1 cost incurred 800. Estimated additional cost 400. For X1: % complete based on costs = 800 / 1,200 = 66.7%. Revenue = 2,000 x.667 = 1,333. Cost = 800. Profit = 533. For X2: Contract finished middle of X2. Total cost = 1,250. Revenue 667. Cost = 450. Profit =
47 Section 23 Construction contracts Construction contracts where the outcome cannot be estimated reliably: Use cost recovery method: Recognise revenue only to the extent of costs incurred whose recovery is probable Recognise contract costs as expense when incurred 47
48 Section 23 Example: cost recovery method Example: Fixed price, 5-year contract for 100,000. Year 1, 5,000 costs incurred. Unable to estimate additional costs but (a) loss is unlikely and (b) collectibility is highly probable. Use cost recovery method In Year 1 revenue of 5,000, costs of 5,000, profit of 0 48
49 Section 23 Interest, royalties, dividends 49 Interest: Recognise using the effective interest method Royalties: Recognise on an accrual basis in accordance with the substance of the relevant agreement Dividends: Recognise when the right to receive payment is established All of these assume collectability and measurement reliability
50 Section 23 Example: interest revenue Example: We buy zero coupon bond for 100,000, redeemable at 134,010 in 6 years. PV = (FV) / ((1+int)^periods) 100,000 = (134,010) / ((1+int)^6) int =.05 = 5% Year Interest at 5% x Receivable Bond Receivable Debit Bond, Credit Int. Revenue 100, , , , , , , , , , , , ,010 50
51 Section 23 Disclosure 51 Accounting policies for revenue recognition Amount of revenue for each category: Sale of goods Rendering of services Interest Royalties Dividends Commissions Government grants Any others
52 Section 23 Accounting policy disclosure 52 Revenue recognition Revenue from sales of goods is recognised when the goods are delivered and title has passed. Royalty revenue from licensing patents for use by others is recognised on a straight-line basis over the license period. Revenue is measured at the fair value of the consideration received or receivable, net of discounts and sales-related taxes collected on behalf of the government.
53 Section 23 Revenue by category 53 Note X Revenue 20X2 20X1 Sale of goods XX,XXX,XXX XX,XXX,XXX Royalties licensing of patents X,XXX,XXX X,XXX,XXX XX,XXX,XXX XX,XXX,XXX
54 Section 23 Disclosure: contracts Additional disclosures for construction contracts: Revenue recognised Method for determining revenue Method for determining stage of completion Gross amount due from customers (asset) Gross amount due to customers (liability) 54
55 TOO HEAVY, APPLY IFRS 15! THE BIG TAKE-AWAY 55 TO BE FAIR, APPLY IFRS for SMEs! Section 23
56 56 A Brief on IFRS 15 Source: IFRS Box
57 Mar IAS 11 Accounting for CCs The Journey: IFRS 15 Dec IAS 18: Revenue Recognition Dec IAS 18: Revenue Recognition & IAS 11: CCs (rev.) 2011 IFRS Found ation Jun. 2007: IFRIC 13: Customer Loyalty Programmes Dec. 2001: SIC 31: Revenue Barter Transactions involving advertisings services Apr IAS 11 & IAS 18 Adopted Jul. 2008: IFRIC 15: Agreements for the Construction of Real Estate Jan. 2009: IFRIC 18: Transfers of Assets from customers May. 2014: IFRS 15: Revenue from contracts with customers w.e.f: 1 Jan 18 57
58 IFRS 15-Effective date We are here Effective date 1 January 2018 Annual reports 31 December Mar June Sep Dec Early adoption permitted Interim reports Standard published 28 May 2014 May be adopted retrospectively, or as of the application date by adjusting retained earnings at that date and disclosing the effect of adoption on each line of profit or loss (the cumulative effect approach )
59 Standards superseded IFRS 15 supersedes: (a) IAS 11 Construction Contracts; (b) IAS 18 Revenue; Related interpretations (c) IFRIC 13 Customer Loyalty Programmes; (d) IFRIC 15 Agreements for the Construction of Real Estate; (e) IFRIC 18 Transfers of Assets from Customers; and (f) SIC-31 Revenue Barter Transactions Involving Advertising Services.
60 Objective of IFRS 15 Provide principles for reporting useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from a contract with a customer.
61 IFRS 15: Differences with IAS 18 and IAS 11 IAS 18/11 Separate models for -Construction contracts - Goods - Services Focus on risk and rewards Limited guidance on -Multiple element arrangements -- Variable consideration -- Licenses IFRS 15 Single model for performance obligations -Satisfied over time - Satisfied at a point in time Focus on control More guidance : Separating elements, Allocating transaction price, Variable consideration, Licenses, Options, repurchase agreements and so on
62 The Five Step Model Overview 1 Identify the contract with a customer Identify the performance obligations 4 Revenue 2 3 Determine the transaction price 3 4 Allocate the transaction price to performance obligations 5 Recognise revenue 62
63
64 64 VIDEO ON IFRS 15 SOURCE:
IFRS for SMEs IFRS Foundation-World Bank
International Financial Reporting Standards 1 IFRS for SMEs IFRS Foundation-World Bank 23 24 May 2011 Minsk, Belarus Copyright 2010 IFRS Foundation. All rights reserved. The IFRS for SMEs 2 Topic 1.6 Section
More informationThis version includes amendments resulting from IFRSs issued up to 31 December 2009.
International Accounting Standard 18 Revenue This version includes amendments resulting from IFRSs issued up to 31 December 2009. IAS 18 Revenue was issued by the International Accounting Standards Committee
More informationRevenue. International Accounting Standard 18 IAS 18. IFRS Foundation
International Accounting Standard 18 Revenue In April 2001 the International Accounting Standards Board (IASB) adopted IAS 18 Revenue, which had originally been issued by the International Accounting Standards
More informationObjective of IAS 18 The objective of IAS 18 is to prescribe the accounting treatment for revenue arising from certain types of transactions and events
IAS 18- Revenue Objective of IAS 18 The objective of IAS 18 is to prescribe the accounting treatment for revenue arising from certain types of transactions and events. Introduction Income is defined as
More informationIAS 18, Revenue A Closer Look
IAS 18, Revenue A Closer Look K.S.Muthupandian* International Accounting Standard (IAS) 18, Revenue, prescribes the accounting treatment of Revenue arising from certain types of transactions and events.
More informationNew Zealand Equivalent to International Accounting Standard 18 Revenue (NZ IAS 18)
New Zealand Equivalent to International Accounting Standard 18 Revenue (NZ IAS 18) Issued November 2004 and incorporates amendments to 31 December 2015 other than consequential amendments resulting from
More informationIFRS Foundation: Training Material for the IFRS for SMEs. Module 23 Revenue
2009 IFRS Foundation: Training Material for the IFRS for SMEs Module 23 Revenue IFRS Foundation: Training Material for the IFRS for SMEs including the full text of Section 23 Revenue of the International
More informationIAS 18 Revenue OVERVIEW
REVENUE IAS18 IAS 18 Revenue OVERVIEW IAS 18 Overview Objective / scope / definitions Measurement (How much) Recognition (When) Sale of goods Rendering of services Interest / royalties / dividends Disclosure
More informationIndian Accounting Standard (Ind AS) 18
Revenue Indian Accounting Standard (Ind AS) 18 Revenue Contents OBJECTIVE 1 Paragraphs SCOPE 1 6 DEFINITIONS 7 8 MEASUREMENT OF REVENUE 9 12 IDENTIFICATION OF THE TRANSACTION 13 SALE OF GOODS 14 19 RENDERING
More informationWIRC Study Ind AS Study Circle. Practical issues of Ind AS 11 and Ind AS
WIRC Study Ind AS Study Circle Practical issues of Ind AS 11 and Ind AS 9.1.2016 at ICAI Bhavan IFRS 115 supersedes the following standards IAS 11 Construction Contract IAS 18 Revenue IFRIC 13 Customer
More informationIndian Accounting Standard (Ind AS) 18 Revenue
Indian Accounting Standard (Ind AS) 18 Revenue Indian Accounting Standard (Ind AS) 18 Revenue Contents Paragraphs Objective Scope 1 6 Definitions 7 8 Measurement of revenue 9 12 Identification of the transaction
More informationIFRS SCOPE: Revenue Recognition Accounting
IFRS SCOPE: Revenue Recognition Accounting A ccounting for revenue correctly is a critical factor in determining the true and fair nature of financial statements of an entity. This is because revenue affects
More informationIFRS for SMEs IFRS Foundation-World Bank
International Financial Reporting Standards 1 IFRS for SMEs IFRS Foundation-World Bank 26 27 May 2011 Kiev, Ukraine Copyright 2010 IFRS Foundation. All rights reserved. The IFRS for SMEs 2 Topic 1.2 Overview
More informationASSURANCE AND ACCOUNTING ASPE IFRS: A Comparison Revenue
ASSURANCE AND ACCOUNTING ASPE IFRS: A Comparison Revenue In this publication we will examine the key differences between Accounting Standards for Private Enterprises (ASPE) and International Financial
More informationInternational Financial Reporting Standard. Small and Medium-sized Entities
A Staff Overview This overview of the IASB s exposure draft of a proposed International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) was prepared by Paul Pacter, IASB
More informationInternational Financial Reporting Standards
International Financial Reporting Standards as issued at 1 January 2009 The consolidated text of International Financial Reporting Standards (IFRSs ) including International Accounting Standards (IASs
More informationHigh Level Comparison
Hong Kong Financial Reporting Standard for Private Entities vs Hong Kong Small and Medium-sized Entity Financial Reporting Framework and Financial Reporting Standard (Revised) High Level Comparison Hong
More informationInternational GAAP Holdings Limited Model financial statements for the year ended 31 December 2017 (With early adoption of IFRS 15)
International GAAP Holdings Limited Model financial statements for the year ended 31 December 2017 (With early adoption of IFRS 15) Appendix 2: Early application of IFRS 15 Revenue from Contracts with
More informationExaminable Documents September 2017 to June 2018
Examinable Documents September 2017 to June 2018 FINANCIAL REPORTING The examinable documents below are applicable to the International and UK papers as indicated at the start of each table. Knowledge
More informationIFRS for SMEs IFRS Foundation-World Bank
International Financial Reporting Standards 1 IFRS for SMEs IFRS Foundation-World Bank 26 27 May 2011 Kiev, Ukraine Copyright 2010 IFRS Foundation. All rights reserved. The IFRS for SMEs 2 Topic 3.1(b)
More informationIFRS Considerations for Audit Committees. February 2009
IFRS Considerations for Audit Committees. February 2009 Contents Introduction... 3 Using This Publication... 3 More Information... 3 Significant Accounting Topics... 4 Inventory... 4 Consolidation... 5
More informationIFRS 1 - First-Time Adoption of IFRS
IFRS 1 - First-Time Adoption of IFRS P C First time adoption session outline Overview Exemptions and exceptions Disclosure IFRS 1 General principles Application Requires To the first IFRS financial statements
More informationEducation Session: IFRS 15, Revenue from Contracts with Customers. Receive an education session on the revenue model in IFRS 15; and
Meeting: Meeting Location: International Public Sector Accounting Standards Board Santiago, Chile Meeting Date: March 10 13, 2015 Agenda Item 12 For: Approval Discussion Information Education Session:
More informationSME FRS and Other Updates 20 November 2014
SME FRS and Other Updates 20 November 2014 Ms CHUA Suk Lin Ivy Mr LAM Chi Yuen Nelson 2014 Nelson Consulting Limited 1 Effective for 2015 Dec. Year End Selected new interpretations and amendments to HKFRSs
More informationIncome: Both revenue and gains, excluding contributions from equity participants
IAS 18 Revenue Definitions Income: Both revenue and gains, excluding contributions from equity participants Revenue: Income that arises in the course of ordinary activities of the entity Major revenue
More informationA closer look at the new revenue recognition standard
Applying IFRS IFRS 15 Revenue from Contracts with Customers A closer look at the new revenue recognition standard June 2014 Overview The International Accounting Standards Board (IASB) and the US Financial
More informationFINANCIAL PRUDENCE WORKSHOP FOR SMALL MEDIUM SIZE ENTITIES. 8th -10th December 2014, SAFARI PARK NAIROBI.
FINANCIAL PRUDENCE WORKSHOP FOR SMALL MEDIUM SIZE ENTITIES 8th -10th December 2014, SAFARI PARK NAIROBI. FINANCIAL REPORTING FOR SMEs By: CPA JOSEPHAT NJOROGE WAITITU. CONTACTS:JOSEPHAT WAITITU & ASSOCIATES
More informationIASC Foundation: Training Material for the IFRS for SMEs. Module 11 Basic Financial Instruments
2009 IASC Foundation: Training Material for the IFRS for SMEs Module 11 Basic Financial Instruments IASC Foundation: Training Material for the IFRS for SMEs including the full text of Section 11 Basic
More informationGood First-time Adopter (International) Limited
Good First-time Adopter (International) Limited International GAAP Illustrative financial statements of a first-time adopter for the year ended 31 December 2012 Based on International Financial Reporting
More informationAccounting for revenue - the new normal: Ind AS 115. April 2018
Accounting for revenue - the new normal: Ind AS 115 April 2018 Contents Section Page Preface 03 Ind AS 115 - Revenue from contracts with customers 04 Scope 07 The five steps 08 Step 1: Identify the contract(s)
More informationSCR Reporting. Checklist Key areas requiring
Checklist Key areas requiring attention This checklist is designed to assist users to identify the potential changes introduced by FRS 102 Section 1A, and to outline the accounting policy and transitional
More informationThe IFRS for SMEs Topic 2.1 Section 11 Basic Financial Instruments Section 12 Other Fin. Inst. Issues Section 22 Liabilities and Equity
The IFRS for SMEs 1 Topic 2.1 Section 11 Basic Financial Instruments Section 12 Other Fin. Inst. Issues Section 22 Liabilities and Equity This PowerPoint presentation was prepared by IFRS Foundation education
More informationFull text edition Grant Thornton International Ltd. All rights reserved. PDF created with pdffactory Pro trial version
Full text edition 2008 Grant Thornton International Ltd. All rights reserved. 2008 Grant Thornton International Ltd. All rights reserved. Member firms of the Grant Thornton International organisation are
More informationEY IFRS Core Tools. IFRS Update of standards and interpretations in issue at 31 December 2014
EY IFRS Core Tools IFRS Update of standards and interpretations in issue at 31 December 2014 Contents Introduction 2 Section 1: New pronouncements issued as at 31 December 2014 4 Table of mandatory application
More informationSME FRS and Other Updates 27 November 2014
SME FRS and Other Updates 27 November 2014 LAM Chi Yuen Nelson 林智遠 MBA MSc BBA ACA ACS CFA CGMA CPA(US) CTA FCCA FCPA FCPA(Aust.) FHKIoD FTIHK MHKSI MSCA 2014 Nelson Consulting Limited 1 Effective for
More informationGood First-time Adopter (International) Limited
Good First-time Adopter (International) Limited International GAAP Illustrative financial statements of a first-time adopter for the year ended 31 December 2011 Based on International Financial Reporting
More informationRevenue from Contracts with Customers
International Financial Reporting Standard 15 Revenue from Contracts with Customers In April 2001 the International Accounting Standards Board (IASB) adopted IAS 11 Construction Contracts and IAS 18 Revenue,
More informationConsolidated financial statements and independent auditor s report BORETS INTERNATIONAL LIMITED 31 December 2017
Consolidated financial statements and independent auditor s report BORETS INTERNATIONAL LIMITED 31 December 2017 Contents Independent Auditor s Report Consolidated Statement of Financial Position 1 Consolidated
More information.01 This Standard shall be applied in accounting for revenue arising from the following transactions and events: (a) the sale of goods;
COMPARISON OF GRAP 9 AND IAS 18 GRAP 9 IAS 18 DIFFERENCE Objective.01 The Framework for the Preparation and Presentation of Financial Statements defines revenue as the gross inflow of economic benefits
More informationAdviser alert Example Consolidated Financial Statements 2014
Adviser alert Example Consolidated Financial Statements 2014 September 2014 Overview The Grant Thornton International IFRS team has published the 2014 version of Reporting under IFRS: Example Consolidated
More informationImplementing IFRS 15 Revenue from Contracts with Customers A practical guide to implementation issues for the aerospace and defence industry
Implementing IFRS 15 Revenue from Contracts with Customers A practical guide to implementation issues for the aerospace and defence industry Contents About this guide 1 Overview 2 Scope and core principle
More information2015 Amendments to the IFRS for SMEs
May 2015 International Financial Reporting Standard (IFRS ) for Small and Medium-sized Entities (SMEs) 2015 Amendments to the IFRS for SMEs 2015 Amendments to the International Financial Reporting Standard
More informationEY IFRS Core Tools IFRS Update
EY IFRS Core Tools IFRS Update of standards and interpretations in issue at 31 August 2014 Contents Introduction 2 Section 1: New pronouncements issued as at 31 August 2014 4 Table of mandatory application
More informationA closer look at IFRS 15, the revenue recognition standard
Applying IFRS IFRS 15 Revenue from Contracts with Customers A closer look at IFRS 15, the revenue recognition standard (Updated October 2018) Overview Many entities have recently adopted the largely converged
More informationINSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF KENYA. IFRS Workshop 24 th to 28 th August 2015 Session Two: Revenue Recognition
INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF KENYA IFRS Workshop 24 th to 28 th August 2015 Session Two: Revenue Recognition By CPA Geoffrey Injeni Credibility. Professionalism. AccountAbility 1 Content
More informationHKAS 21, 18 and 23 9 February 2006
HKAS 21, 18 and 23 9 February 2006 Exchange rate Revenue Borrowing cost Nelson Lam CFA FCCA FCPA(Practising) MBA MSc BBA CPA(US) ACA 2005-06 Nelson 1 Today s Agenda Effects of of Changes in in Foreign
More informationLKAS 18 - Revenue. 24 th July Hiranthi Fonseka Director, Ernst & Young. Page 1
LKAS 18 - Revenue Hiranthi Fonseka Director, Ernst & Young 24 th July 2012 Page 1 Accounting for substance of transactions Contractual Requirements Statutory Environment Principle of the Standard Page
More informationIFRS Update of standards and interpretations in issue at 30 June 2015
IFRS Update of standards and interpretations in issue at 30 June 2015 Contents Introduction 2 Section 1: New pronouncements issued as at 30 June 2015 4 Table of mandatory application 4 IFRS 9 Financial
More informationHKFRS / IFRS UPDATE 2014/09
ISSUE 2014/09 JULY 2014 WWW.BDO.COM.HK s HKFRS / IFRS UPDATE 2014/09 REVENUE FROM CONTRACTS WITH CUSTOMERS Summary On 28 May 2014, the International Accounting Standards Board (IASB) and the US Financial
More informationRevenue from contracts with customers (IFRS 15)
Revenue from contracts with customers (IFRS 15) This edition first published in 2015 by John Wiley & Sons Ltd. Cover, cover design and content copyright 2015 Ernst & Young LLP. The United Kingdom firm
More informationThe new revenue recognition standard retail and consumer products
Applying IFRS in Retail and Consumer Products The new revenue recognition standard retail and consumer products May 2015 Contents Overview... 3 1. Summary of the new standard... 4 2. Scope, transition
More informationPearson plc IFRS Technical Analysis
Pearson plc IFRS Technical Analysis Contents A. Introduction B. Basis of presentation C. Accounting Policies D. Critical Accounting Assumptions and Judgements Schedules 1. Income statement Reconciliation
More informationreal estate and construction The Revenue Proposals Impact on Construction Companies
real estate and construction The Revenue Proposals Impact on Construction Companies Real Estate and Construction The Revenue Proposals Impact on Construction Companies The IASB and the FASB have jointly
More informationINTERNATIONAL FINANCIAL REPORTING STANDARDS
INTERNATIONAL FINANCIAL REPORTING STANDARDS Model Financial Statements 2006 (Preliminary Version) About Deloitte Touche Tohmatsu Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein,
More informationigaap 2005 in your pocket
igaap 2005 in your pocket A summary of international financial reporting from a UK perspective July 2005 Contents Deloitte guidance 1 Abbreviations used in this publication 2 Current international standards
More informationExaminable Documents September 2018 to June 2019
Examinable Documents September 2018 to June 2019 FINANCIAL REPORTING The examinable documents below are applicable to the International and UK papers as indicated at the start of each table. Knowledge
More informationIFRS News. Improvements to IFRSs Emerging issues and practical guidance* *connectedthinking 1. Supplement June 2008
IFRS News Emerging issues and practical guidance* Supplement June 2008 PRINT CONTINUED Improvements to IFRSs 2008 The IASB published the final amendments to its first annual improvements project last month.
More informationSimilarities and Differences
www.pwc.com/jp/ifrs Similarities and Differences A comparison of IFRS and JP GAAP 2016 April 2016 (This page is intentionally left blank) Contents Preface... 2 How to use this publication... 3 First-time
More informationIFRS for SMEs. World Bank, Chisinau. International Financial Reporting Standards. Michael Wells, Director of IFRS Education Initiative IASC Foundation
27 May 2010 International Financial Reporting Standards IFRS for SMEs World Bank, Chisinau Michael Wells, Director of IFRS Education Initiative IASC Foundation The views expressed in this presentation
More informationPwC Alert. Malaysian Private Entities Reporting Standards (MPERS) A new reporting framework for Private Entities
Issue 124 November 2015 PP 9741/10/2012 (031262) PwC Alert Malaysian Private Entities Reporting Standards (MPERS) A new reporting framework for Private Entities Page 3 MPERS at a glance Page 5 Comparing
More informationNon-current Assets Held for Sale and Discontinued Operations
International Financial Reporting Standard 5 Non-current Assets Held for Sale and Discontinued Operations In April 2001 the International Accounting Standards Board (IASB) adopted IAS 35 Discontinuing
More informationIFRS 1 First-time Adoption of International. Standards*
Wrestling with First-time Adoption of IFRS IFRS 1 First-time Adoption of International Financial Reporting Standards* Session Objective and Key Take aways Session Objective: The objective of this session
More informationConsolidated Financial Statements
Gedeon Richter Consolidated Financial Statements 2013 Consolidated Financial Statements Table of Contents Consolidated Income Statement 6 Consolidated Statement of Comprehensive Income 6 Consolidated Balance
More informationDate: 19 April 2018 ESMA
Date: 19 April 2018 ESMA32-63-365 List of decisions published in the Extracts from the EECS s Database of Enforcement (updated October 2017) Number Package Number Decision referenfinancial year-end Name
More informationINTERIM FINANCIAL STATEMENTS IAS 34 explained (30 June 2017) (Including an illustrative example)
INTERIM FINANCIAL STATEMENTS IAS 34 explained (30 June 2017) (Including an illustrative example) This publication is presented in two parts. - Part I explains IAS 34 Interim Financial Reporting and provides
More informationIFRS-compliant accounting principles
IFRS-compliant accounting principles Since 1 January 2005, Uponor Corporation has prepared its consolidated financial statements in compliance with the following accounting principles: Main functions Uponor
More informationIFRS model financial statements 2017 Contents
Model Financial Statements under IFRS as adopted by the EU 2017 Contents Section 1 New and revised IFRSs adopted by the EU for 2017 annual financial statements and beyond... 3 Section 2 Model financial
More informationModule 23 Revenue TEST YOUR KNOWLEDGE. Question 1. Question 2
TEST YOUR KNOWLEDGE Test your knowledge of the requirements for accounting and reporting revenue in accordance with the IFRS for SMEs by answering the questions below. Once you have completed the test
More informationDeliberation on IFRS. by CA. D.S. Rawat
Deliberation on IFRS IAS-1,2,,7, 8,10, 12,16,17,18,19,20, 23, 24,27,28,31,32,36,37,38,39,40 IFRS -5,6,7, 8 by CA. D.S. Rawat Partner, Bansal & Co. IAS 18 REVENUE Objective When the revenue should be recognised
More informationIFRS for SMEs IFRS Foundation-World Bank
!International Financial Reporting Standards 1 IFRS for SMEs IFRS Foundation-World Bank 11 13 January 2011 Astana, Kazakhstan Copyright 2010 IFRS Foundation. All rights reserved. The IFRS for SMEs 2 Topic
More informationEY IFRS Core Tools. IFRS Update. of standards and interpretations in issue at 28 February 2014
EY IFRS Core Tools IFRS Update of standards and interpretations in issue at 28 February 2014 Contents Introduction 2 Section 1: New pronouncements issued as at 28 February 2014 4 Table of mandatory application
More informationFinancial Reporting Matters
Financial Reporting Matters December 2005 Issue 9 A UDIT It is the time of the year again to take stock of financial reporting requirements, both new and anticipated, that have a direct impact on the year-end
More informationNon-current Assets Held for Sale and Discontinued Operations
International Financial Reporting Standard 5 Non-current Assets Held for Sale and Discontinued Operations In April 2001 the International Accounting Standards Board (IASB) adopted IAS 35 Discontinuing
More informationMEDX HEALTH CORP. Consolidated Financial Statements For the Three Months Ended March 31, 2015 and 2014 (UNAUDITED) (Presented in Canadian dollars)
Consolidated Financial Statements (UNAUDITED) () MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING The accompanying unaudited consolidated financial statements for MedX Health Corp. were prepared by
More informationExample Consolidated Financial Statements. International Financial Reporting Standards (IFRS) Granthor Corporation Group 31 December 2008
Example Consolidated Financial Statements International Financial Reporting Standards (IFRS) Granthor Corporation Group 1 Introduction 2008 The preparation of financial statements in accordance with IFRS
More informationMEDX HEALTH CORP. 30, (UNAUDITED)
Interim Condensed Consolidated Financial Statements (UNAUDITED) () MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING The accompanying interim condensed consolidated financial statements for MedX Health
More informationAmendments to IFRS for SMEs
A C C O U N T I N G U P D A T E ( I F R S f o r S M E s ) s to IFRS for SMEs Introduction The International Accounting Standards Board (IASB) has published amendments to its 'International Financial Reporting
More informationFinancial Reporting Update 2015 (with Sample Financial Statements for Year Ended 31 December 2014) 5 May 2015
Financial Reporting Update 2015 (with Sample Financial Statements for Year Ended 31 December 2014) 5 May 2015 LAM Chi Yuen Nelson 林智遠 MBA(HKUST) MSc BBA ACS CFA CGMA CPA(US) CTA FCA FCCA FCPA FCPA(Aust.)
More informationThe IFRS for SMEs Topic 2.1 Section 11 Basic Financial Instruments Michael Wells
The IFRS for SMEs 1 Topic 2.1 Section 11 Basic Financial Instruments Michael Wells Sections 11-12 Introduction 2 Financial instruments split into two sections: Sec. 11 Basic Financial Instruments Sec.
More informationModel financial statements
Model financial statements A guide to producing consolidated financial statements for entities which qualify for differential reporting Financial years ending on or after 31 December Introduction Welcome
More informationErnst & Young IFRS Core Tools April IFRS Update. of standards and interpretations in issue at 31 March 2012
Ernst & Young IFRS Core Tools April 2012 IFRS Update of standards and interpretations in issue at 31 March 2012 Contents Introduction 2 Section 1: New pronouncements issued as at 31 March 2012 4 Table
More informationFinancial Statements 2009
Financial Statements 2009 Financial Statements 2009 EADS FINANCIAL STATEMENTS 2009 1 2 EADS FINANCIAL STATEMENTS 2009 Financial Statements 2009 1 2 3 4 5 EADS N.V. Consolidated Financial Statements (IFRS)
More information2009 International Financial Reporting Standards update
2009 International Financial Reporting Standards update Contents Introduction 3 Section 1: New and amended standards and interpretations applicable to December 2009 year-end 5 IFRS 1 First-time Adoption
More informationFinancial Reporting Update May 2015
Financial Reporting Update 2015 15 May 2015 LAM Chi Yuen Nelson 林智遠 MBA(HKUST) MSc BBA ACS CFA CGMA CPA(US) CTA FCA FCCA FCPA FCPA(Aust.) FHKIoD FTIHK MHKSI MSCA 2014-15 Nelson Consulting Limited 1 Today
More informationLASCO DISTRIBUTORS LIMITED FINANCIAL STATEMENTS 31 MARCH 2016
FINANCIAL STATEMENTS FINANCIAL STATEMENTS I N D E X PAGE Independent Auditors Report to the Members 1-2 FINANCIAL STATEMENTS Statement of Profit or Loss and Other Comprehensive Income 3 Statement of Financial
More informationBarita Unit Trusts Management Company Limited. Financial Statements 30 September 2014
Barita Unit Trusts Management Company Limited Financial Statements Barita Unit Trusts Management Company Limited Index Independent Auditors Report to the Members Page Financial Statements Statement of
More informationIAS Difference SA GAAP
IAS Difference SA GAAP IAS 2 Inventories: IAS 2 allows the use of the LIFO, FIFO or weighted average costing system, while AC 108 only allows the use of the FIFO and weighted average costing systems. AC
More informationImplementing IFRS 15 Revenue from Contracts with Customers A practical guide to implementation issues for the travel, hospitality and leisure sector
Implementing IFRS 15 Revenue from Contracts with Customers A practical guide to implementation issues for the travel, hospitality and leisure sector GAAP: Clear vision Contents About this guide 1 Overview
More informationApplying IFRS IFRS 15 Revenue from Contracts with Customers. A closer look at the new revenue recognition standard
Applying IFRS IFRS 15 Revenue from Contracts with Customers A closer look at the new revenue recognition standard Updated September 2016 Overview In May 2014, the International Accounting Standards Board
More informationNotes (Restated) 48,302,075 44,153,240
Page 3 S L HORSFORD AND COMPANY LIMITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 30 SEPTEMBER 2014 CURRENT ASSETS Notes 2014 2013 (Restated) Cash at Bank and in Hand 566,401 621,274 Accounts Receivable
More informationNew Accounting Standards and Interpretations for Tier 1 For-profit Entities. 31 March 2016
New Accounting Standards and Interpretations for Tier 1 For-profit Entities 31 March 2016 Introduction This document is applicable for Tier 1 for-profit entities applying New Zealand Equivalents to International
More informationIFRS for Boards Boards and Audit Committees Sang Sang--Kiet Ly Kiet Ly A d u i d t dit Par tner Victoria, BC March 1, 2011
IFRS for Boards and Audit Committees Sang-Kiet Ly Audit Partner Victoria, BC March 1, 2011 IFRS The Basics Canada s transition to IFRS Who is affected publicly accountable enterprises To be adopted by
More informationMEDX HEALTH CORP. 30, (UNAUDITED)
Interim Condensed Consolidated Financial Statements (UNAUDITED) () MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING The accompanying unaudited interim condensed consolidated financial statements for
More informationREVENUE RELATED TO ORDINARY ACTIVITIES ACCORDING TO IFRS AND ROMANIAN REGULATIONS
REVENUE RELATED TO ORDINARY ACTIVITIES ACCORDING TO IFRS AND ROMANIAN REGULATIONS ECOBICI NICOLAE ASSOCIATE PROFESSOR PHD, CONSTANTIN BRANCUSI UNIVERSITY OF TARGU JIU e-mail: nycu2004ro@yahoo.com Abstract
More informationManagement s Responsibility for the Financial Statements
AUDITOR S REPORT To the Board of Directors and Shareholders of Chukai Public Company Limited I have audited the accompanying consolidated of Chukai Public Company Limited and its subsidiaries, which comprise
More informationDiploma in International Financial Reporting
Answers Diploma in International Financial Reporting June 2006 Answers 1 (a) Consolidated balance sheet of Alpha at 31 March 2006 $ 000 Assets Non-current assets: Property, plant and equipment (90,000
More informationOCTOBER The Road to IFRS a practical guide to IFRS 1 and first-time adoption
OCTOBER 2012 The Road to IFRS a practical guide to IFRS 1 and first-time adoption Important Disclaimer: This document has been developed as an information resource. It is intended as a guide only and the
More informationAn International Financial Reporting Standard for SMEs
An International Financial Reporting Standard for SMEs Paul Pacter IASB Director of Standards for Small and Medium-sized Entities CReCER Regional Conference on Accounting & Auditing Mexico City 13 June
More informationDR. WU SKINCARE CO., LTD. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AND REVIEW REPORT OF INDEPENDENT ACCOUNTANTS DECEMBER 31, 2017 AND 2016
DR. WU SKINCARE CO., LTD. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AND REVIEW REPORT OF INDEPENDENT ACCOUNTANTS DECEMBER 31, 2017 AND 2016 For the convenience of readers and for information purpose
More information86 MARKS AND SPENCER GROUP PLC FINANCIAL STATEMENTS CONSOLIDATED INCOME STATEMENT
86 CONSOLIDATED INCOME STATEMENT Notes Underlying 53 weeks ended 2 April 52 weeks ended 28 March Non-underlying Underlying Non-underlying Revenue 2, 3 10,555.4 10,555.4 10,311.4 10,311.4 Operating profit
More information